Kansas City, Missouri-based Evergy, Inc. (EVRG) generates, transmits, distributes, and sells electricity in the U.S. With a market cap of $14.6 billion, Evergy serves residences, commercial firms, industries, municipalities, and other electric utilities.
The utilities major has lagged behind the broader market over the past year. EVRG stock has gained 21.4% on a YTD basis and 31.9% over the past year trailing behind the S&P 500 Index’s ($SPX) rally of 25.5% in 2024 and 35.7% over the past 52-week period.
Narrowing the focus, Evergy has also lagged behind the Utilities Select Sector SPDR Fund’s (XLU) 23.7% gains on a YTD basis but marginally outpaced XLU’s 31.5% returns over the past year.
Shares of Evergy saw a marginal uptick and maintained a positive momentum for the next three trading sessions after the release of its better-than-expect Q3 earnings on Nov. 7. The company observed a robust 8.5% year-over-year growth in operating revenues, reaching $1.8 billion, exceeding Wall Street’s topline expectations. Additionally, Evergy reported an impressive 7.7% growth in adjusted earnings, reaching $465.5 million, driven by new retail rates, FERC-regulated investments, and growth in weather-normalized demand. Moreover, EVRG’s adjusted EPS of $2.02 surpassed analysts’ estimates by a notable 3.6%.
Observing the robust performance during the quarter, Evergy reaffirmed its full-year adjusted EPS guidance of $3.73 to $3.93, and gave an adjusted EPS guidance of $3.92 to $4.12 for fiscal 2025, bolstering investor confidence.
For the current fiscal year, ending in December, analysts expect Evergy to report an 8.5% year-over-year growth in adjusted EPS to $3.84. The company’s earnings surprise history is disappointing. EVRG missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
EVRG stock has a consensus “Moderate Buy” rating overall. Among the 13 analysts covering the stock, seven recommend “Strong Buy,” and six suggest a “Hold” rating.
This configuration is more bullish than a month ago, when six analysts recommended a “Strong Buy” rating.
On Oct. 29, Mizuho analyst Anthony Crowdell initiated coverage on EVRG with an “Outperform” rating with a price target of $67.
While the mean price target of $64 represents a 1% premium to current price levels, the street-high target of $71 suggests a potential upside of 12%.
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